CAROLINA FREIGHT CARRIERS SPINS OFF ITS IN-HOUSE BROKERAGE OPERATION

CAROLINA FREIGHT CARRIERS SPINS OFF ITS IN-HOUSE BROKERAGE OPERATION

Eyeing shippers who need to out-source transportation services, Carolina Freight Carriers Corp. is spinning off its in-house freight brokerage to create a third-party subsidiary.

"We've had intermodal and brokerage operations for a number of years," said Braxton Vick, the Cherryville, N.C.-based carrier's executive vice president, corporate services. "This will allow us to branch off into other types of third-party logistics services."The new unit, called Innovative Logistics Inc. and based in Fort Hill, S.C., already has lined up a half-dozen shipper clients, Mr. Vick said.

Starting in April, Innovative will offer transportation and logistics management, warehousing, freight payment, claims, processing and consulting services, said Kirk Williams, Innovative's president.

"We can now go in and out-source any transportation need," Mr. Vick said.

Carolina created Innovative as a stand-alone unit so it wouldn't be viewed by shippers as an arm of the truck carrier, forbidden to use facilities belonging to other transportation concerns, Mr. Vick said.

"We will use anybody. Our focus is on giving the customer what he wants at the best possible price," he said.

The expansion of Carolina's in-house unit puts the carrier amid the ranks of the nation's larger carriers who've formed their own third parties to attract lucrative business from shippers.

One such creation, Menlo Logistics Inc., a subsidiary of Consolidated

Freightways Inc., recently garned a contract to handle a substantial portion of Sears, Roebuck and Co.'s freight.